Emission Reduction Credits (ERCs) are at the heart of the Federal and State regulatory programs that allow for initial construction or expansion of major sources of air pollution.

In most states, the use of ERCs for offsetting proposed increases in air pollution is tied to a specific air basin. For example, the State of Texas requires OFFSETS in only 3 separate geographical areas, while California tops the regulatory framework with 35 separate air districts, each with its own regulations on how ERCs can be created and then utilized as OFFSETS.

ERCs exist for all criteria pollutants – and may soon exist in many jurisdictions for carbon. The available amount and the cost of air credits vary widely from state to state and even within regions, usually depending on how heavily polluted an area in question is.